Chile would become the first South American country to be a member of the Organization for Economic Cooperation and Development (OECD) under an agreement signed early this year by OECD Secretary-General Angel Gurría and Chilean Finance Minister Andrés Velasco in the presence of President Michelle Bachelet in the city of Santiago in Chile.
The Secretary-General said that, “Chile had been reforming its economy. The experience of the country’s reformation would be an asset for the OECD in addressing problems such as inequality and sustainable pension systems.” He added that, “Chile’s groundbreaking pension reforms in the early 1980s have served as a model for many other countries.”
Meanwhile, the country’s acceptance into OECD membership is a clear signal that the international community is recognizing the democratic reforms and the sound economic policies that are being done in Chile for the past two decades. For the OECD, Chile’s membership is a major milestone in its mission to build a stronger, cleaner and fairer global economy.
During the early 1990s, Chile’s reputation as a role model for economic reform was strengthened when the democratic government of then President Patricio Aylwin initiated sweeping economic reforms that netted an 8 percent increase in the country’s Gross Domestic Products (GDP). In 2006, Chile became the country with the highest nominal GDP per capita in Latin America.
When the global financial crisis hit in 2008, Chilean Government’s prudent tax policies gave it the financial leeway needed for stimulus measures to support demand and employment.
President Bachelet said that “It was the start of a new road toward the future that opens new and great opportunities to advance more rapidly’ toward becoming one of the world’s developed countries.”
The South American country has taken significant steps by introducing new laws to end the banking secrecy that provides a shield for possible tax evasion and enabling prosecutors to pursue companies suspected of bribery and corruption.
Other steps were taken by Chilean officials to conform to the OECD standards. A new National Policy on Chemical Safety Standards on Environmental Protection, and the implementation of another major reform that would extend public pension coverage are currently being undertaken.
In addition, a new legislation has established a clear separation between the State and the Board of copper mining company Codelco, Chile’s largest state-owned enterprise. In the private sector, a new law will boost transparency by requiring increased information available for financial markets while combating misuse of insider information together with reinforcing requirements for external auditors.
The Chilean economy has been growing at more than 5% a year in the last twenty years. The Chilean Government has made impressive progress in reducing poverty, although more still needs to be done, according to the OECD.
Related Posts
No related posts.
